For this question, assume that the Phillips curve equation is represented by the following equation: ?t - ?t-1 = (m + z) - ?ut. Given this information, the natural rate of unemployment will be equal to
A) m + z.
B) (m + z - ?).
C) ?(m + z).
D) 0.
E) none of the above
E
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Which of the following illustrates the concept of external benefit?
A) Good weather increases the size of the wheat crop. B) A new pesticide increases the size of the wheat crop. C) A gardener enjoys his flowers. D) Neighbors enjoy a gardener's flowers.
When individuals use ________ about an economic variable to make a decision, expectations are rational
A) only historical information B) all available information C) only information garnered in the private sector D) only information announced by the Fed
What is the free-rider problem and how does it cause the underproduction of a public good in a competitive market?
Please provide the best answer for the statement.
When the unemployment rate is on the horizontal axis and the real wage is on the vertical axis, an increase in productivity will cause which of the following to occur?
A) The wage-setting and price-setting curves will both shift downward. B) The wage-setting and price-setting curves will both shift upward. C) The price-setting curve to shift downward, and no shift in the wage-setting curve. D) The wage-setting curve to shift upward, and the price-setting curve to shift downward. E) The wage-setting curve to shift downward, and the price-setting curve to shift upward.